Applied Optoelectronics commenced construction on nearly 400,000 square feet of new capacity in Pearland, Texas, specifically for 800G and 1.6T optical transceivers. This expansion targets a monthly output exceeding 650,000 units by late 2026. Separately, NVIDIA is cutting authorized AI customers in Asia by approximately 50% to control product diversion into China, while New York State paused new large data centers over 50MW for up to a year.
Optical networking capacity is expanding to meet future AI demand, while NVIDIA tightens GPU supply to Asia and New York imposes a datacenter moratorium.